At any given time, almost 7 million people are in jail, prison, or on probation or parole in the United States. Each year, more than 600,000
individuals are released from state and federal prisons and an additional
9 million come and go from local jails. More than two-thirds of this population are arrested again within 3 years and half of these people are re-incarcerated (ASPE.gov).
Mass incarceration and the cycle of recidivism have wide-ranging collateral consequences for individuals, their families and communities, and disproportionately impact people of color, women, and the LGBTQ+ community. This can include problems with housing, employment, health, and accessing mainstream banking services.
Community-based organizations provide critical support to help formerly incarcerated individuals find jobs and transitional housing, and reintegrate into society. However, access to affordable banking and credit is a significant issue, not only for people just returning home, but also for many of the estimated 20 million individuals with a felony record (prisonpolicy.org). The lack of a valid form of identification, poor credit history, prior banking problems, or simply having a criminal past, can prevent people from opening even a basic bank account. As a result, millions of formerly incarcerated individuals are unbanked and credit invisible, forced to use check cashers, payday lenders and other predatory, high-cost financial services.
The mission of
Diverge Proposed Federal Credit Union (PFCU) is to fill this gap by providing a financial home for formerly incarcerated people and their families. This not-for-profit financial institution will offer money management and credit counseling services, new account onboarding that accepts alternative forms of identification, access to affordable checking and credit builder accounts, and other low and no-cost mainstream financial services. Studies have shown that improved access to financial education and affordable banking services helps people create a path to financial well-being and economic mobility and also helps reduce recidivism (dobs.pa.gov).
We are now seeking assistance from the credit union movement and mission-aligned supporters to help us open the doors to this groundbreaking financial cooperative. Your support will further demonstrate to the NCUA that there is widespread interest in starting a new credit union dedicated to improving the financial lives of formerly incarcerated people and their families.
Read the sign-on letter
HERE
Thank you for supporting financial inclusion for formerly incarcerated people and their families.
The Diverge PFCU Organizing Members
###
By submitting this form your organization is agreeing that Diverge PFCU may use your organization's name/logo in it's list of community supporters on its website and in marketing materials.
